Shots of Knowledge: Today in Business:The Relevance of Equity Theory in the Modern Business Society

Reward is the body of work as much as motivation is the spirit of labour. Equity Theory is one of four concepts that involve process or cognitive ideations of motivation, which focus on conscious human decision making processes as an elaboration of motivation. These theories effectively describe the nature of conscious cognitive function that manifests self-gauged behaviour, meaning how individualized behavioural phenomenon is activated, given a vector (directed), and maintained in the singularly-willed and manually-directed vehicle of human cerebral processes. It treats of the fact that humans engage in ‘social screening’ by comparing their rewards relevant to their work-capacity with their counterparts. Consequently, the perception of the individual is influenced by this relativistic process that ultimately determines on how motivated they are or will become.

So, the question begs as to when equity is achieved. Equity is said to have become when one individual sees that during the screening process with their counterpart, they are both at par in terms of their rewards and work-load. The converse is also true, establishing what an individual would term as inequity, which can be of two types-under-rewarding and over-rewarding. Under-rewarding usually rears its head during long working hours, for instance. Over-rewarding happens when someone gets more for effectively the same effort or least effort. It has been held that while under-rewarding motivates resolution, the opposite is true with over-rewarding; where an individual dissolves their qualms of consciousness in cognitive dissonance to convince themselves they deserve the said reward despite being not the case.

Application to the modern course of business is essential. No longer is there the reality that management that undemocratically delegate and reward without due consideration. In every avenue of the contemporary of the business world is concerned with equity in employee motivation, precisely it focuses on principles of fairness, justice, and balance-concepts that are universal and timeless. Employees come with distinctive generation expectations that derive from their existential experiences, eventually which leak into the everyday working condition. The ratio of effort-input and reward-outcome is the defining equation expressing the delicate relationship between an organization’s productivity and employee motivation. Business may change, but values are a constant and Equity Theory serves to look beyond the run-of-the-mill attributes of rewards going deeper into the core of employee-motivation towards work; a welcome reality in this modern age.


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